<Page>

                                  FORM 10-QSB

                 Quarterly Report Under Section 13 or 15(d) of
                      the Securities Exchange Act of 1934

                For the quarterly period ended October 31, 2001

                           Commission File No. 1-8125

                                 TOROTEL, INC.
       (Exact name of small business issuer as specified in its charter)

          MISSOURI                                       44-0610086
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

               13402 SOUTH 71 HIGHWAY, GRANDVIEW, MISSOURI 64030
                    (Address of principal executive offices)

                                 (816) 761-6314
                          (Issuer's telephone number)

                                      NONE
              (Former name, former address and former fiscal year,
                          if change since last report)

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months and (2) has been
subject to such filing requirements for the past 90 days.

                                 Yes  X  No
                                     ---    ---

As of December 10, 2001, there were 2,811,590 shares of Common Stock, $.50 Par
Value, outstanding.

<Page>

                         TOROTEL, INC. AND SUBSIDIARIES

                                     INDEX

<Table>
<S>                                                                        <C>
PART I.   FINANCIAL INFORMATION

     Item 1.   Financial Statements

          Consolidated Balance Sheet as of October 31, 2001                    1

          Consolidated Statements of Operations for the six months
            ended October 31, 2001 and 2000                                    2

          Consolidated Statements of Operations for the three months
            ended October 31, 2001 and 2000                                    3

          Consolidated Statements of Cash Flows for the six months
            ended October 31, 2001 and 2000                                    4

          Notes to Consolidated Financial Statements                           5

     Item 2.   Management's Discussion and Analysis of Plan of Operation      10

PART II.  OTHER INFORMATION

     Item 1.   Legal Proceedings                                              13

     Item 4.   Submission of Matters to a Vote of Security Holders            13

     Item 6.   Exhibits and Reports on Form 8-K                               13

SIGNATURES                                                                    14
</Table>

<Page>

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEET (Unaudited)
As of October 31, 2001

<Table>
<S>                                                                   <C>
ASSETS

Current assets:
     Cash                                                             $   364,000
     Accounts receivable, net (Note 5)                                    445,000
     Current maturity of note receivable (Note 11)                        154,000
     Inventories (Notes 3 and 5)                                          283,000
     Prepaid expenses and other current assets                             38,000
                                                                      -----------
                                                                        1,284,000

Property, plant and equipment, net (Note 5)                               303,000

Note receivable, less current maturity (Note 11)                           82,000

Other assets                                                                4,000
                                                                      -----------

                                                                      $ 1,673,000
                                                                      ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Current maturities of long-term debt (Notes 5 and 11)            $   150,000
     Trade accounts payable (Note 11)                                     715,000
     Accrued liabilities (Note 11)                                        239,000
                                                                      -----------
                                                                        1,104,000

Long-term debt, less current maturities (Notes 5 and 11)                  466,000

Stockholders' equity (Notes 6, 7 and 8):
     Common stock, at par value                                            29,000
     Capital in excess of par value                                    10,085,000
     Accumulated deficit                                               (9,806,000)
                                                                      -----------
                                                                          308,000
     Less treasury stock, at cost                                         205,000
                                                                      -----------
                                                                          103,000
                                                                      -----------

                                                                      $ 1,673,000
                                                                      ===========
</Table>

         The accompanying notes are an integral part of this statement.


                                       1
<Page>

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Six Months Ended October 31,

<Table>
<Caption>
                                                               2001            2000
                                                            ----------      ----------
<S>                                                         <C>             <C>
Net sales                                                   $1,962,000      $1,695,000
Cost of goods sold                                           1,107,000       1,077,000
                                                            ----------      ----------

     Gross profit                                              855,000         618,000

Operating expenses:
     Engineering                                                92,000          84,000
     Selling, general and administrative                       413,000         387,000
                                                            ----------      ----------
                                                               505,000         471,000
                                                            ----------      ----------

     Earnings from operations                                  350,000         147,000

Other expense (income):
     Interest expense                                           25,000          54,000
     Interest income                                           (11,000)        (18,000)
     Other, net                                                     --          (2,000)
                                                            ----------      ----------
                                                                14,000          34,000
                                                            ----------      ----------

     Earnings before provision for income taxes
       and extraordinary item                                  336,000         113,000

Provision for income taxes (Note 4)                                 --              --
                                                            ----------      ----------

     Earnings before extraordinary item                        336,000         113,000

Extraordinary item (Note 9):
     Gain on settlements of debt                               438,000              --
                                                            ----------      ----------

Net earnings                                                $  774,000      $  113,000
                                                            ==========      ==========

Basic earnings per share (Note 6):
     Earnings before extraordinary item                     $      .12      $      .04
     Extraordinary item                                            .15              --
                                                            ----------      ----------
                                                            $      .27      $      .04
                                                            ==========      ==========

Diluted earnings per share (Note 6):
     Earnings before extraordinary item                     $      .12      $      .04
     Extraordinary item                                            .15              --
                                                            ----------      ----------
                                                            $      .27      $      .04
                                                            ==========      ==========
</Table>

        The accompanying notes are an integral part of these statements.


                                       2
<Page>

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended October 31,

<Table>
<Caption>
                                                                2001           2000
                                                            ----------      ----------
<S>                                                         <C>             <C>
Net sales                                                   $1,017,000      $  840,000
Cost of goods sold                                             568,000         526,000
                                                            ----------      ----------

     Gross profit                                              449,000         314,000

Operating expenses:
     Engineering                                                49,000          42,000
     Selling, general and administrative                       211,000         195,000
                                                            ----------      ----------
                                                               260,000         237,000
                                                            ----------      ----------

     Earnings from operations                                  189,000          77,000

Other expense (income):
     Interest expense                                           12,000          27,000
     Interest income                                            (5,000)        (10,000)
     Other, net                                                     --          (2,000)
                                                            ----------      ----------
                                                                 7,000          15,000
                                                            ----------      ----------

     Earnings before provision for income taxes
       and extraordinary item                                  182,000          62,000

Provision for income taxes (Note 4)                                 --              --
                                                            ----------      ----------

     Earnings before extraordinary item                        182,000          62,000

Extraordinary item (Note 9):
     Gain on settlements of debt                               411,000              --
                                                            ----------      ----------

Net earnings                                                $  593,000      $   62,000
                                                            ==========      ==========

Basic earnings per share (Note 6):
     Earnings before extraordinary item                     $      .07      $      .02
     Extraordinary item                                            .14              --
                                                            ----------      ----------
                                                            $      .21      $      .02
                                                            ==========      ==========

Diluted earnings per share (Note 6):
     Earnings before extraordinary item                     $      .07      $      .02
     Extraordinary item                                            .14              --
                                                            ----------      ----------
                                                            $      .21      $      .02
                                                            ==========      ==========
</Table>

        The accompanying notes are an integral part of these statements.


                                       3
<Page>

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended October 31,

<Table>
<Caption>
                                                                         2001           2000
                                                                      ---------      ---------
<S>                                                                   <C>            <C>
Cash flows from operating activities:
     Net earnings                                                     $ 774,000      $ 113,000
     Adjustments to reconcile net earnings to
       net cash provided by operations:
          Gain on settlements of debt                                  (438,000)            --
          Depreciation and amortization                                  27,000         42,000
          Increase (decrease) in cash flows from operations
            resulting from changes in:
               Accounts receivable                                      (40,000)       (11,000)
               Inventories                                              (19,000)       (37,000)
               Prepaid expenses and other assets                        (27,000)       (47,000)
               Trade accounts payable                                   (64,000)        13,000
               Accrued liabilities                                      (31,000)        (5,000)
                                                                      ---------      ---------

Net cash provided by operating activities                               182,000         68,000
                                                                      ---------      ---------

Cash flows from investing activities:
     Capital expenditures                                                (8,000)            --
     Proceeds from note receivable                                       73,000         65,000
                                                                      ---------      ---------

Net cash provided by investing activities                                65,000         65,000
                                                                      ---------      ---------

Cash flows from financing activities:
     Principal payments on long-term debt                              (124,000)      (103,000)
     Payments on capital lease obligations                               (5,000)        (6,000)
     Proceeds from long-term debt                                        75,000             --
     Note and interest payable to former officer                       (150,000)        21,000
                                                                      ---------      ---------

Net cash used in financing activities                                  (204,000)       (88,000)
                                                                      ---------      ---------

Net increase in cash                                                     43,000         45,000
Cash at beginning of period                                             321,000         95,000
                                                                      ---------      ---------

Cash at end of period                                                 $ 364,000      $ 140,000
                                                                      =========      =========

Supplemental Disclosures of Cash Flow Information
     Cash paid during the period for:
          Interest                                                    $  25,000      $  31,000
</Table>

        The accompanying notes are an integral part of these statements.


                                       4
<Page>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 1--Basis of Presentation

     Torotel specializes in the custom design and manufacture of a wide variety
of precision magnetic components, consisting of transformers, inductors,
reactors, chokes and toroidal coils. Approximately 94% of Torotel's sales are
derived from domestic customers. The accompanying unaudited consolidated
financial statements reflect the normal recurring adjustments which are, in the
opinion of management, necessary to present fairly Torotel's financial position
at October 31, 2001, and the results of operations for the three and six months
ended October 31, 2001.

     The financial statements contained herein should be read in conjunction
with Torotel's financial statements and related notes filed on Form 10-KSB for
the year ended April 30, 2001.

Note 2 - Future Liquidity

     The accompanying consolidated financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America, which contemplate continuation of Torotel as a going concern. At
October 31, 2001, Torotel had working capital of $180,000, compared to negative
working capital of $120,000, $734,000 and $921,000 at April 30, 2001, 2000 and
1999, respectively. Torotel has been profitable in each of the past seven
quarters, and in eight of the last nine. Furthermore, continuing operations have
provided cash in the last four years, and based on its current forecast for
fiscal 2002, management believes operating cash sufficient for at least one year
will be generated. In addition, management believes the outstanding liabilities
associated with the terminated merger in fiscal 1999 with Electronika, Inc. and
the trade debt from a discontinued subsidiary (see Note 11 of Notes to
Consolidated Financial Statements) will be settled at amounts significantly
lower than that carried on the balance sheet. Management continues to evaluate
the Torotel's liquidity position and believes it has taken all necessary steps
to provide Torotel with adequate liquidity to continue in existence.

Note 3--Inventories

     The components of inventories are summarized as follows:

<Table>
<S>                                                         <C>
          Raw materials                                     $ 54,000
          Work in process                                    192,000
          Finished goods                                      37,000
                                                            --------
                                                            $283,000
                                                            ========
</Table>

Note 4--Income Taxes

     Torotel has net operating loss carryforwards available as benefits to
reduce future income taxes, subject


                                       5
<Page>

to applicable limitations. These operating loss carryforwards expire in various
amounts in the years 2003 through 2014.

     The difference between the financial and tax bases of assets and
liabilities is determined annually. Deferred income taxes and liabilities are
computed for those differences that have future tax consequences using the
currently enacted tax laws and rates that apply to the periods in which they are
expected to affect taxable income. Valuation allowances are established, if
necessary, to reduce the deferred tax asset to the amount that will, more likely
than not, be realized. Income tax expense is the current tax payable or
refundable for the period plus or minus the net change in the deferred tax
assets or liabilities.

     The following table summarizes the components of the net deferred tax
asset:

<Table>
<S>                                                         <C>
          Net operating loss carryforwards                  $2,199,000
          Inventory valuation reserve                          190,000
          Tax credit carryforwards                              20,000
          Other                                                 43,000
                                                            ----------
                                                             2,452,000
          Less valuation allowance                           2,452,000
                                                            ----------

                                                            $       --
                                                            ==========
</Table>

Note 5 - Long-Term Debt

     On September 17, 2001, Torotel entered into a $75,000 promissory note with
Vista Bank, N.A. Under the terms of the note, the outstanding balance bears
interest at an initial rate of 6.5% per annum and will fluctuate daily at 1%
over the bank's base lending rate. The note requires monthly principal and
interest payments, with a first payment of $2,083.33 and 35 payments of
$2,326.47. The note has a maturity date of September 17, 2004 and is
collateralized by trade accounts receivable, inventories and equipment. As of
October 31, 2001, the outstanding principal balance was $73,000 and the
effective interest rate was 6.5%. Proceeds of the loan were used to help pay off
the note payable to a former officer (see Note 10 of Notes to Consolidated
Financial Statements).

Note 6--Earnings Per Share

     Statement of Financial Accounting Standards (SFAS) No. 128, EARNINGS PER
SHARE, requires dual presentation of basic and diluted EPS on the face of the
statement of earnings regardless of whether basic and diluted EPS are the same;
and requires a reconciliation of the numerator and denominator used in computing
basic and diluted EPS. Basic EPS excludes dilution and is computed by dividing
earnings available to common stockholders by the weighted average number of
common shares outstanding for the period. Diluted EPS is computed similarly to
fully diluted EPS pursuant to APB Opinion 15. Diluted EPS reflects the potential
dilution that could occur if securities or other contracts to issue common stock
were exercised or converted into common stock or resulted in the issuance of
common stock that then shared in the earnings of the entity. Pursuant to SFAS
No. 128, the basic and diluted earnings per common share were computed as
follows:


                                       6
<Page>

<Table>
<Caption>
     YEAR-TO-DATE EPS CALCULATIONS                                  2001           2000
                                                                 ----------     ----------
<S>                                                              <C>            <C>
          Net earnings                                           $  336,000     $  113,000
          Weighted average common shares outstanding              2,811,590      2,811,590
          Incremental shares                                             --             --

          Basic earnings per share                               $      .12     $      .04
          Diluted earnings per share                             $      .12     $      .04
</Table>

          No incremental shares are included in the EPS calculations for either
          period due to the market price of Torotel's common stock being lower
          than the exercise price of the stock equivalents under contract.

<Table>
<Caption>
     QUARTERLY EPS CALCULATIONS                                     2001           2000
                                                                 ----------     ----------
<S>                                                              <C>            <C>
          Net earnings                                           $  182,000     $   62,000
          Weighted average common shares outstanding              2,811,590      2,811,590
          Incremental shares                                             --             --

          Basic earnings per share                               $      .07     $      .02
          Diluted earnings per share                             $      .07     $      .02
</Table>

          No incremental shares are included in the EPS calculations for either
          period due to the market price of Torotel's common stock being lower
          than the exercise price of the stock equivalents under contract.

Note 7--Employee Stock Options

     In accordance with the Incentive Compensation Plan approved by shareholders
on September 19, 1994, Torotel reserved 400,000 common shares for issuance to
key employees pursuant to the exercise of incentive and non-qualified stock
options granted prior to June 20, 2004. The options are accounted for under APB
Opinion 25, ACCOUNTING FOR STOCK ISSUED TO EMPLOYEES, and related
interpretations. The incentive stock options have a term of five years when
issued and vest 50% per year at the end of each of the first two years. The
non-qualified stock options have a term of ten years when issued and vest 25%
per year at the end of each of the first four years. The exercise price of each
option equals the market price of Torotel's common stock on the date of grant.
Accordingly, no compensation cost will be recognized upon the grant of any
options.

     As of October 31, 2001, there were no options outstanding under this Plan.
The fair values of the options granted previously were estimated on the date of
grant using the Black-Scholes options-pricing model. The fair value of the
incentive stock options was determined using the following weighted average
assumptions: no dividend payments over the life of the options; expected
volatility of 106.1%; risk-free interest rate of 6.94%; and expected life of
five years. The fair value of the non-qualified stock options was determined
using the following weighted average assumptions: no dividend payments over the
life of the options; expected volatility of 106.1%; risk-free interest rate of
6.6%; and expected life of ten years.


                                       7
<Page>

Note 8--Stock Warrants

     Pursuant to a settlement that ended a class action alleging racial
discrimination in hiring by Torotel Products, Inc., Torotel agreed to issue a
warrant certificate to the Torotel Settlement Fund to purchase 100,000 shares of
Torotel, Inc. common stock at $.75 per share. The warrant is 100% vested upon
issuance and cannot be exercised until the market price of Torotel's common
stock reaches $2.00 per share. The warrant expires on May 4, 2003.

     The $33,000 fair value of the warrant was estimated on the date of grant
using the Black-Scholes options-pricing model using the following weighted
average assumptions: no dividend payments over the life of the warrant; expected
volatility of 75.9%; risk-free interest rate of 5.8%; and expected life of two
years.

     Stock warrant transactions for each period are summarized as follows:

<Table>
<Caption>
                                                               2001                   2000
                                                      --------------------    --------------------
                                                       Weighted                Weighted
                                                        Shares     Average      Shares     Average
                                                        Under      Exercise     Under      Exercise
                                                        Option      Price       Option      Price
                                                       -------     --------    -------     --------
<S>                                                    <C>         <C>         <C>         <C>
     Outstanding at beginning of period                100,000     $   .75     100,000     $   .75
     Granted                                                --          --          --          --
     Exercised                                              --          --          --          --
     Forfeited                                              --          --          --          --
                                                       -------                 -------
     Outstanding at end of period                      100,000     $   .75     100,000     $   .75
                                                       =======                 =======

     Warrants exercisable at end of period                  --          --          --          --
     Weighted average fair value of
       warrants granted during the year                                 --                      --
</Table>

The following information applies to warrants outstanding at October 31, 2001:

<Table>
<S>                                                              <C>
          Number outstanding                                      100,000
          Range of exercise prices                               $    .75
          Weighted average exercise price                        $    .75
          Weighted average remaining contractual life                1.50 yrs.
</Table>

Note 9 - Extraordinary Item

     For the six months ended October 31, 2001, the extraordinary item as
presented in the accompanying consolidated statements of operations includes a
gain of $438,000 resulting from the settlement of old liabilities at amounts
lower than originally recorded.

     For the three months ended October 31, 2001, the extraordinary item as
presented in the accompanying consolidated statements of operations includes a
gain of $411,000 resulting from the settlement of an old liability at an amount
lower than originally recorded (see Note 10 of Notes to Consolidated Financial
Statements).


                                       8
<Page>

Note 10--Note Payable to Former Officer

     On May 6, 1997, Torotel Products, Inc. was accepted into the Voluntary
Disclosure Program of the United States Department of Defense, resulting from
its failure to perform some required "thermal shock" testing as frequently as
required, and inaccurately certifying that all required testing had been
performed. On June 27, 2000, Torotel Products entered into a Release and
Settlement Agreement with the United States of America. Pursuant to the
agreement, Torotel Products agreed to pay an aggregate total of $100,000 over a
nineteen-month period. The aggregate legal fees associated with the testing
deficiencies amounted to $292,000 during the course of the investigation.

     Torotel believed that certain of its former officers may have been
responsible for the misconduct related to the test failures. In February 1997,
Torotel suspended all principal and interest payments due under a note payable
to a former president and chief executive officer of Torotel. As of April 30,
2001, the aggregate amount due under the note was $561,000, which consisted of
the outstanding principal of $384,000 plus accrued interest of $177,000.

     In consideration of a payment of $150,000, the former executive agreed to
forgive the remaining debt balance of $234,000 and all accrued unpaid interest
relating to the note. In return, Torotel has agreed not to pursue any claims
against the former executive for costs and penalties incurred by Torotel as a
result of the thermal shock testing investigation. Torotel borrowed $75,000 to
help fund this payment (see Note 5 of Notes to Consolidated Financial
Statements).

     As a result of this settlement, Torotel recorded an extraordinary gain to
net earnings of $411,000 in the second quarter ending October 31, 2001.

Note 11--Discontinued Subsidiary

     The operations of East Coast Holdings, Inc. (formerly named OPT Industries,
Inc.), a wholly owned subsidiary of Torotel, were discontinued in April 1999,
and the assets sold to Shared Information Group Management Associates, L.L.C
("SIGMA"). The remaining assets and liabilities related to this subsidiary as of
October 31, 2001, are included in the accompanying consolidated balance sheet
under the following captions and in the amounts shown:

<Table>
<S>                                                         <C>
          Current maturity of note receivable               $154,000
          Note receivable, less current maturity            $ 82,000
          Current maturities of long-term debt              $ 95,000
          Trade accounts payable                            $418,000
          Accrued liabilities                               $ 95,000
          Long-term debt, less current maturities           $ 51,000
</Table>


                                       9
<Page>

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION

     The following management comments regarding Torotel's results of operations
and outlook should be read in conjunction with the Consolidated Financial
Statements included pursuant to Item 1 of this Quarterly Report.

     The discussion and analysis of the results of operations includes only the
continuing operations of Torotel, Inc. and its subsidiary, Torotel Products,
Inc.

SIX MONTHS ENDED OCTOBER 31, 2001 VERSUS SIX MONTHS ENDED OCTOBER 31, 2000

     Net sales increased 16% from $1,695,000 to $1,962,000 because of increased
sales of magnetics products resulting from a higher shippable backlog at the
beginning of the current fiscal year. While Torotel has experienced a 6%
decrease in order bookings for its magnetics products during the first half of
fiscal year 2002, its magnetics backlog remains 4% higher than at this time a
year ago. The slower magnetics bookings were offset by a $177,000 order for the
potted coil assembly for the Hellfire II missile system. While the terrorist
attack of September 11 has not impacted Torotel's order bookings, some aerospace
customers have rescheduled certain existing orders for a later shipping date.
However, we are heading into the second half of fiscal 2002 with a backlog level
similar to that of a year ago. As a result, management remains optimistic about
the sales outlook for the rest of this fiscal year.

     Gross profit as a percentage of net sales increased 7% because of increased
sales volume, lower material costs associated with the product mix, and improved
labor productivity resulting from ongoing efforts to increase throughput.

     Engineering expenses increased nearly 10% from $84,000 to $92,000 due to
higher payroll costs. Management does anticipate a slight increase in the
present level of engineering expenses during the next few quarters.

     Selling, general and administrative (SG&A) expenses increased 7% from
$387,000 to $413,000. The SG&A expenses of Torotel, Inc. decreased 10% from
$79,000 to $71,000 primarily because of a decrease in professional fees. The
SG&A expenses of Torotel Products increased 11% from $308,000 to $342,000
primarily because of an $18,000 increase in workers compensation insurance costs
due to a dividend received last year, a $14,000 accrual for incentive
compensation awards, a $6,000 increase in liability insurance costs, a $5,000
increase in rental expense from operating leases, a $4,000 increase in payroll
costs, and a $3,000 increase in professional fees. These increases were offset
by a $13,000 decrease in depreciation expense and a $3,000 decrease in sales
commissions. Management does anticipate an increase in the present level of SG&A
expenses during the next few quarters.

     Interest expense decreased 54%. The interest expense of Torotel, Inc.
decreased 77% from $31,000 to $7,000 because of the settlement reached on the
note payable to a former officer (see Note 10 of Notes to Consolidated Financial
Statements) and a lower principal balance on the guaranteed note with Vista
Bank. The interest expense of Torotel Products decreased 22% from $23,000 to
$18,000 because of lower debt balances.

     Interest income decreased 39% from $18,000 to $11,000 due to a lower
principal balance on the note receivable from SIGMA.


                                       10
<Page>

     Sundry non-operating income decreased because of late payment fees
collected last year pursuant to the terms of the note receivable from SIGMA.

     For the reasons discussed above, the consolidated pretax earnings before
extraordinary items increased from $113,000 to $336,000. The pretax loss of
Torotel, Inc. decreased from $90,000 to $67,000. The pretax earnings of Torotel
Products increased from $203,000 to $403,000.

THREE MONTHS ENDED OCTOBER 31, 2001 VERSUS THREE MONTHS ENDED OCTOBER 31, 2000

     Net sales increased 21% from $840,000 to $1,017,000 because of increased
sales of magnetics products resulting from a higher shippable backlog at the
beginning of the quarter.

     Gross profit as a percentage of net sales increased 7% because of increased
sales volume, lower material costs associated with the product mix, and improved
labor productivity resulting from ongoing efforts to increase throughput.

     Engineering expenses increased nearly 17% from $42,000 to $49,000 because
of an increase in payroll costs. Management does anticipate a slight increase in
the present level of engineering expenses during the next few quarters.

     Selling, general and administrative (SG&A) expenses increased 8% from
$195,000 to $211,000. The SG&A expenses of Torotel, Inc. decreased slightly from
$42,000 to $41,000. The SG&A expenses of Torotel Products increased 11% from
$153,000 to $170,000 primarily because of a $9,000 increase in workers
compensation insurance costs due to a dividend received last year, a $7,000
accrual for incentive compensation awards, a $5,000 increase in rental expense
from operating leases, and a $2,000 increase in liability insurance costs. These
increases were offset by a $6,000 decrease in depreciation expense. Management
does anticipate an increase in the present level of SG&A expenses during the
next few quarters.

     Interest expense decreased nearly 56%. The interest expense of Torotel,
Inc. decreased 81% from $16,000 to $3,000 because of the settlement reached on
the note payable to a former officer (see Note 10 of Notes to Consolidated
Financial Statements) and a lower principal balance on the guaranteed note with
Vista Bank. The interest expense of Torotel Products decreased 18% from $11,000
to $9,000 because of lower debt balances.

     Interest income decreased 50% because of a lower principal balance on the
note receivable from SIGMA.

     Sundry non-operating income decreased because of late payment fees
collected last year pursuant to the terms of the note receivable from SIGMA.

     For the reasons discussed above, the consolidated pretax earnings before
extraordinary items increased from $62,000 to $182,000. The pretax loss of
Torotel, Inc. decreased from $46,000 to $39,000. The pretax earnings of Torotel
Products increased from $108,000 to $221,000.

LIQUIDITY AND CAPITAL RESOURCES

     Torotel relies on funds generated internally to meet its normal operating
requirements and to service


                                       11
<Page>

bank indebtedness. While there is no immediate plan to secure any new financing,
management continues to evaluate ways of improving Torotel's liquidity position.

     During the six months ended October 31, 2001, Torotel's operations provided
$182,000 in cash flow because of operating earnings.

     Investing activities provided $65,000 in cash flow because of proceeds of
$73,000 from the note receivable from SIGMA. Torotel had capital expenditures of
$8,000 during the six months ended October 31, 2001, and anticipates additional
expenditures of $15,000 during the balance of fiscal 2002.

     Financing activities used $204,000 in cash flow because of decreases in
long-term debt and the payoff of the note payable to former officer.

     Management believes that inflation will have only a minimal effect on
future operations since such effects will be offset by sales price increases
which are not expected to have a significant effect upon demand.

OTHER

     Except for historical information contained herein, certain of the matters
discussed above are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and are subject to the safe harbor
created by that Act. These statements are based on assumptions about a number of
important factors and involve risks and uncertainties that could cause actual
results to be different from what is stated here. These risk factors are:
decreased demand for products, delays in developing new products, expected
orders that do not materialize, loss of key customers, the impact of competition
and price erosion as well as supply and manufacturing constraints, and other
risks and uncertainties.


                                       12
<Page>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

     The remaining liabilities related to a discontinued subsidiary include
trade accounts payable of $418,000 (see Note 11 of Notes to Consolidated
Financial Statements). Several claims have been filed by vendors for collection
of amounts due, and it's possible more could be filed. Since the discontinued
subsidiary's remaining assets have been assigned as collateral for the remaining
bank debt and the debt owed to the United States, and most of the remaining
proceeds are targeted for unpaid payroll taxes, this subsidiary has no other
source of income to satisfy its trade debt obligations. This trade debt remains
the sole responsibility of the discontinued subsidiary. Neither Torotel, Inc. or
Torotel Products, Inc. has assumed these obligations. While the claims by
vendors may result in judgments against the discontinued subsidiary, neither
Torotel, Inc. or Torotel Products, Inc. intends to provide any funds to satisfy
the judgments.

Item 4. Submission of Matters to a Vote of Security Holders

     The annual meeting of stockholders was held in Grandview, Missouri, on
Monday, September 17, 2001, to elect a Board of Directors. At the meeting, there
were 2,399,117 shares voting, with nominees needing 1,199,560 shares to be
elected. Stockholders elected the following individuals to a one-year term on
the Board of Directors, with the number of shares voting "FOR" each nominee
indicated.

<Table>
<S>                                          <C>
                    Dale H. Sizemore, Jr.    2,389,401
                    Richard A. Sizemore      2,389,373
                    H. James Serrone         2,370,841
</Table>

Item 6. Exhibits and Reports on Form 8-K

     a)   Exhibits--None

     b)   Reports on Form 8-K--There were no reports filed on Form 8-K during
          the three months ended October 31, 2001.


                                       13
<Page>

                                   SIGNATURES

     In accordance with the requirements of the Securities Exchange Act of 1934,
the Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

Torotel, Inc.
(Registrant)

Date: December 10, 2001                      /s/ H. James Serrone
      -----------------------                -----------------------------
                                             H. James Serrone
                                             Vice President of Finance and
                                             Chief Financial Officer


                                       14